Has anyone on the forum sold or purchased mineral rights in Woodward County, Oklahoma or any nearby counties? I may be selling in the near future and I would like to know the current prices.
Thanks in advance.
Prices paid are dependent on 1) need to sell, 2) pressures of brokers to buy, 3) inexperience of sellers, 4) persistence of buyers agents, 5) buyers perception of multiple returns on risked purchase price, and 6) rarely the risk discounted calculation of future revenue.
Selling shouldn't be a retail transaction for the owner and selling on averages will not result in a satisfying and fair transaction. Figure out the fair value to you as a start. The asset is yours. How much cash would make you sell?
Thank you. I appreciate your insight.
We received a low ball offer ($150), 60 days ago in May 2016, for some rights in Woodward county. We know they paid $700 for the next, adjacent section in Woodward Co.
With directional drilling abilities of today, and both sections under lease, you can guess what they will do! Owners have to be aware of what their neighbors are being paid.
We counter offered and they came back with a modest increase. We tuned it down and informed the Land Man we would just let it go to forced pooling. The company came back with double the original offered price.
You have to know the oil companies are not your buddy!
The approach the oil company used was to, "talk-down", the historically poor performance of the area. However, they do not mention with the new advances in technology the oil companies have a better chance to produce something from those old formations.
Do not settle for any 1st or 2nd offers. And negotiate the depth, shut-in, Pugh clauses!
Please people, do not ever agree to the, " option to extend lease term".
I have been ripped by oil companies.
Here is a hint... create an alliance with the other owners that are geographically joined with you. You and your neighbors combined mineral rights can add up into a large block of value. Then, apply collective bargaining techniques as a united force. Fight for a higher price and better terms/conditions. The oil companies hate that... they practice the, "divide and conquer", strategy.
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Thanks for the numbers. I last contacted the landman on Friday. He said he had interested companies and wanted to know if I was still interested in selling. I will share the info with the forum when I know more.